Stablecoin Velocity Surges, Reducing Demand for New Tokens

Standard Chartered's latest report on stablecoins reveals a shift in their usage patterns. The bank's analysts found that the velocity of stablecoins has doubled over the past two years, with faster turnover rates supporting more transaction volume without requiring an increase in supply.

The increase in velocity is attributed to new use cases, particularly traditional finance (TradFi) replacement and AI-related transactions. Circle's USDC has led the spike in velocity, while Tether's USDT remains tied to emerging market savings use cases.

According to Geoff Kendrick, Standard Chartered's head of crypto research, the higher velocity reflects a gradual shift toward TradFi use and early AI agentic payments on networks such as Coinbase-backed x402. The finding marks a change from earlier assumptions that stablecoin velocity would remain broadly stable as the market expanded.